UAE

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UAE

Legal Industry in UAE

The UAE is a leading global centre for the legal profession and a key market for English law firms. Outside of the UK and Hong Kong it holds the highest number of English and Welsh practising solicitors. The global economic downturn and subsequent Dubai credit crisis saw the rapid growth of international legal presence slow but not stop, with many firms re-focusing their services in line with demand. Instability in the Middle East and North Africa (MENA) region triggered by the Arab Spring has led to increased investor activity in more stable countries in the region, including the UAE. The main hub for legal services remains in Dubai where many international law firms have their regional headquarters and from where they service the wider Gulf region, in particular Saudi Arabia, Oman, Bahrain and Qatar.
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Articles about Law in UAE

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    Most common legal demands in UAE

    Legal Market Overview in UAE

    As trade and tourism returns to the region, the economy is expected to continue in its recovery, subject to renewed coronavirus outbreaks and volatility in the oil sector.Many legal reforms were introduced in the ‘Year of the 50th’, showcasing further signs of a shift from a Shari’ah based legal system to a more secular system. Over 40 laws were introduced, including the decriminalisation of suicide, cohabitation of unmarried couples and reforms to intellectual property rights and laws. These legal reforms will further bolster the economy as the authorities continue efforts to create a more favourable business environment and improvements to social equality.Dubai and Abu Dhabi continue to act as key legal hubs in the Middle East and international and domestic law firms had a very active year. Practice areas that remain the busiest for law firms include construction arbitration, front-end construction, debt capital markets, TMT and project finance. With the World Expo and the region’s diversification goals to reduce its reliance on hydrocarbons, there continues to be a strong demand for legal services in the UAE.
    An elective monarchy formed from a federation of seven emirates, the United Arab Emirates has experienced remarkable growth with plenty of work opportunities. Consisting of Abu Dhabi (The capital), Ajman, Dubai, Fujairah, Ras Al Khaimah, Sharjah, and Umm Al Quwain, the United Arab Emirates is among the emeralds of Persian Gulf Coast Countries.

    With a GDP of $58,753 per capita & population of over 10 Million, UAE hosts many of the world’s biggest companies – in various sectors – including DHL, Microsoft, Omnicom, Hilton, Marriott Hotels, BP Shell, Standard Chartered, and HSBC.

     

    These companies are the main reason why being a lawyer in UAE is an advantage since the other factors & issues like crime & divorce are not of a great deal of pretext for a lawyer to choose Emirates for their career path.

     

    Based on the latest statistics back in 2017, the UAE crime rate & statistics was 0.46, a 34.22% decline from 2016, making the country the 3rd safest country in the Middle East after Qatar (29th) & Kuwait (36th).

    As mentioned above, the introduction of reforms was not only on cohabitation legalization but also on permitting 100% foreign business ownership, compared with previous requirements of 51% local ownership when based outside of a free zone.

     

    While Foreign UAE residents have renewable visas due to their employment and should be renewed every three years, they have little motivation to invest in the country on a long-term basis, especially in areas like property, an important pillar of the country’s economy.

    In late 2020, the government simplified the existing “golden” visa program, granting 10-year residency to certain professionals and degrees. Furthermore, the five-year retirement visas for people above a certain income level & a remote worker visa allowing one-year stay for people with employment overseas made living in the UAE much easier & foreign-friendly. 

     

    The reforms eased up with the assistance of Shai Zamanian, a U.S.-licensed lawyer who sees these new rules as “opening up unprecedented opportunities for families who seek permanent residency in a stable market but previously could not stay indefinitely in the UAE”.

     

    UAE’s general rule of law score decreased by less than 1% in 2022’s Index. At 37th place out of 140 countries and jurisdictions worldwide, UAE’s rank decreased by 5 in the global rank in comparison to 2019.

    Frequently Asked Questions

    Local Projects

    Local, government and public authority projects in the UAE are generally self-financed. However, it is possible that projects which have traditionally been entirely government-financed may in the future be privately financed or funded through a public private finance initiative.

    International projects

    The size of the project will inevitably affect the way it is financed. Smaller projects in the UAE tend to be financed by lenders on a corporate or full recourse basis, while larger projects will be financed on a project finance basis. Generally this will involve the raising of finance on a limited recourse basis for the purposes of developing a large capital intensive project, where the borrower is a SPV. Repayment will depend on the terms of the financing agreement. Typically these large-scale projects will be based on the Loan Market Association standard finance documents.

    In the UAE, some local banks are taking an active role in the financing of landmark projects. In some cases, Islamic finance structures have been incorporated, which provide another alternative to conventional financing.

    Freezone companies can do business only within the range of freezones.

    Virtual Offices are illegal

    Main legal forms of UAE are as follows:

    Sole proprietorship

    Civil Company

    Limited Liability Company(LLC)

    Partnership

    Private Share Holding Company

    Public ShareHolding Company

    Branch of Foreign Companies/Representative Office

    Branch of GCC companies

    Branch of Free zone company

    Branch of UAE based companies

    Under Sharia and UAE law, there is no spousal maintenance after a divorce. The wife shall get assistance from her divorcee for three months after the divorce, according to Article 69 of Federal Law No. 28/2005. (Idda months)

    As set out at Article 146 Personal Status Law, the mother will have custody of young children. Unless the court orders otherwise, it is expected that custody will move from the mother to the father once the children reach the age of 11 for a boy and 13 for a girl

    The UAE refers to the people with special needs or disabilities as ‘people of determination’ in recognition of their achievements in different fields. Since 2008, the UAE has implemented an inclusion policy for students of determination (students of disability) and facilitated their access in the education system. Education is a key pillar of the ‘National Policy for Empowering People of Determination’. The government is keen to provide an integrative education system in public and vocational education and adapt school curricula to cater their needs. It also provides qualified teachers and specialists, appropriate supportive technologies and learning materials.

    Local Projects

    The common forms of construction contracts in the UAE are based on the International Federation of Consulting Engineers (FIDIC) forms of contract. These are mainly:

    The Conditions of Contract for Construction (Red Book).

    The Conditions of Contract for Plan and Design Build (Yellow Book).

    The Conditions of Contract for EPC/Turnkey Projects (Silver Book).

    The 1999 editions of these FIDIC forms are the most commonly used versions in the UAE.

    International Projects

    FIDIC contracts are also common in international projects. However, there has been an increase in the use of tailored bespoke contracts in mega projects, including PPPs.

    The major difference between a limited liability company and a Free Zone company is that a free zone company cannot conduct business in a non-free zone area without a local distributor or agent, whereas a mainland company can.

    How long is a divorce? If the parties are able to reach agreement in respect of the divorce, arrangements for children and finances, the entire process of divorce in the UAE (through the UAE courts) can be concluded within three months.

    Limitation of liability clauses are commonly used in construction contracts in the UAE and are generally enforceable by the UAE courts. However, limitation of liability clauses will not always be upheld by the UAE courts or by extension an arbitration tribunal. Statutory provisions on the limitation of contractual liability can be found in numerous provisions of the UAE Civil Code, for example:

    Article 296 deals with tortious liability and provides that any provision which exempts a guilty party from liability is void.

    Article 880 deals with decennial liability and provides that contractors, designers and architects will be liable for ten years following completion and handover of the construction works for structural defects or total or partial collapse of the building.

    Regardless of the parties’ agreement, a court and, by extension, an arbitral tribunal, can adjust a contractually agreed compensation to a reasonable figure that equates to the actual loss suffered (Article 390, UAE Civil Code). This is relevant in the context of liquidated damages which are commonly applied to contractors in cases of attributable delay. In this case, a judge or arbitration tribunal can revise the agreed damages upwards or downwards to equal the actual loss suffered. This provision has been invoked by contractors to reduce the amount of liquidated damages agreed in the contract.

    The UAE refers to the people with special needs or disabilities as ‘people of determination’ in recognition of their achievements in different fields. Since 2008, the UAE has implemented an inclusion policy for students of determination (students of disability) and facilitated their access in the education system. Education is a key pillar of the ‘National Policy for Empowering People of Determination’. The government is keen to provide an integrative education system in public and vocational education and adapt school curricula to cater their needs. It also provides qualified teachers and specialists, appropriate supportive technologies and learning materials.